If you have accumulated a substantial amount of unsecured credit card debt, you may be tempted to try Do It Yourself Debt Settlement.

Although it is possible, most people who are inexperienced in dealing with debt collectors end up paying much more than they should.

Why does Do It yourself Debt Settlement end up costing you more?

There are several reasons, but the most important is that debt collectors are for the most part, TRAINED PROFESSIONALS whose only job is to get as much money out of you as possible!

They don't care about your circumstances or why you have fallen behind, and since most of them are paid on commission, they can get mean when trying to get you to pay up.

Collection agencies and Law firms that deal with collections will throw around terms like:

• LEGAL ACTION
• LAWSUIT
• WAGE GARNISHMENT
• LEVY

This scares the average person into agreeing to a monthly payment plan they can't afford or a settlement for 75%-80% of the balance.  A reputable Debt Settlement agency knows how to deal with these collectors and how to get you the best deal possible.

Here is a real life example of a settlement that was just completed by our Settlement Specialists:

Our client was a single female and was unemployed for a long period of time. As a last resort, she used her credit cards to buy groceries, gasoline, and sometimes cash advances to pay her rent. 

One of her cards was a Visa Card and after charge-off was given to a collection agency.  After several unsuccessful attempts to "work something out" with the collection agency, she contacted us to find out what her Debt Relief Options were.

She decided that Debt Settlement was her best option, and our Debt Settlement specialists went to work!

The original balance was approximately $1,400, but after moving around from collector to collector , it was purchased by a "LAW FIRM".

The balance had grown to more than $2,500 as over $1,100 had been added in interest, late fees, and so-called legal fees.

After going back and forth with the collector, our Debt settlement Specialists were able to negotiate the debt down to just $700 which was 50% of the original amount but only 28% of the RIDICULOUSLY INFLATED current balance.

                                        Click Here to See the Actual Settlement Letter

Yes, it is possible for you to negotiate settlements on your own, but after 10 years of experience in helping hundreds of clients settle debts, avoid garnishment and bankruptcy, I believe in the long run the average person will end up paying much more than necessary.

If you need help settling your debts, our Debt Solutions Specialist are here to help.  

1-877-492-4109

Or simply click on the link below for a Free Debt Elimination Analysis!

 

 

NO!! Stop!  Don't do it. . . .you'll regret it!  After filing for bankruptcy, you will be wailing like the witch from Wizard of Oz, "No. . .I'm melting. . .aaaaa!"

Although bankruptcy gives you a reprieve from your current bills, it will be on your credit report for 10 years.  Now, ask yourself this, would you rather have a ding--or rather a huge dent--dogging you for ten years or a small ding for two to three years by using Debt Consolidation or Debt Settlement programs?  Hold that thought while we take a trip into understanding a bankruptcy vs. debt consolidating and debt settlement programs and their affect on your score.

Bankruptcy And Your Credit Score:

In the latest report by the National Bankruptcy Research Center, there has been a slight decrease in bankruptcy filings as people are slowly pulling themselves out of the economy dump.  It also states that this year's first eight months have seen a 10% drop.  That is a start, but the national average shows that one out of 285 people are still filing to get the debt out from under them.  FICO has recently made available examples as to how many points a bankruptcy can actually have on your credit rating:

• Ironically, those that have a very high score can have a significant drop, indicating not even a dent, but a train wreck--could be 240 points or more
• Those who are already having problems with their debt may have just a dent--could be as low as 130 points

Even after filing, lenders require at least two years before applying for credit again.  They do this to give the person the time to begin rebuilding their credit.  Don't be a statistic.  Bankruptcy will only tell future lenders that you failed in meeting previous creditors' requirements.  There are better options. 

Debt Consolidation and Settlement Programs And Your Credit Score:

• Debt Consolidation is a combining all of your debt into one lower monthly payment.  You will generally get a smaller monthly payment, lower interest rate, and few if any fees.
• Debt Settlement Programs work with your creditors to settle the balance for less than owed. (Most of the time less than HALF of what you owe!)

Your score is affected, yes.  However, the score is far less affected than if you were to file bankruptcy, or do nothing.  Ten years is a long time to be haunted by bad credit.  In the two years it takes to apply for credit after filing bankruptcy, you can have your credit score back on track with Debt Consolidation and Debt Settlement programs.

For more information on your options, click on the link below or call 1-877-492-4109

photo by: photosteve101

If you’re struggling with debt, you likely feel like the weight of the world is resting on your shoulders each and every day. Whether it is due to student loans, mortgages, credit cards or other financial struggles, the clutches of debt are enough to make anyone feel trapped and helpless. Luckily, no matter how bad your debt may seem, there are techniques for living debt free.

By taking five easy steps, you can begin eliminating your debt, cleaning up your credit and enjoy financial independence fast.

 

#1 Lock Up Your Credit Cards

The first step is to lock up your credit cards and make all purchases using only the money in your wallet or checking account. Often, people feel that purchasing on credit is simply buying them time before they have to pay up. In reality, you’re only digging yourself a deeper hole.

#2 Make a List of Your Financial Goals

Secondly, make a list of all of your financial goals and set a timeline toward living debt free. Your goals may include buying a home, taking a vacation or purchasing a new vehicle. Keep in mind that these types of goals cannot be accomplished until you eliminate your debt. Your goals can serve as incentive to pay off your debt as fast as possible.

#3 Create a Budget

Third of all, create a budget. Calculate all of your monthly bills and living expenses and decide the minimum amount of money you can live off of while you work towards living debt free. Consider eliminating unnecessary bills such as health clubs or downgrade your cable plan. The extra money you save can be used to reduce your debt.

#4 Hold Yourself Accountable

The fourth step to living debt free is to hold yourself accountable. Debt is a slippery slope and often it is hard to determine the “wants” from the “needs.” Keep a list of your expenditures and post it on your refrigerator. If you share an account with another person in your home, ensure that they also track their spending so you can determine where you overspend and where you can cut back.

#5 Get Help

Finally, be sure to seek professional advice. Our Solutions Specialists are experienced in debt elimination and can advise you of the best methods for your unique situation. While some people can eliminate their debt by using our Debt Consolidation program, others may need to go with Debt Settlement. Whichever method you end up choosing, our debt specialists can help you take the next step to living debt free.

photo by: woodleywonderworks

Debt has the power to overwhelm your life. When the bills start mounting and the collectors start calling, you may feel powerless, disheartened and as though you're in a sinking ship without a life boat. But we at Debt Relief NW, Inc. want you to know there is help out there so you're not left drowning in your debt.

There are several debt relief options available to you when the bills become overwhelming. For many, Debt Settlement is the best choice to get out from under debt, pay off loans and credit cards and come out whole on the other side.

Here's how debt settlement works

When you choose Debt Settlement, Debt Relief NW, Inc. assigns you a personal Debt Solution Specialist to go over your options, work with you to create a budget and establish a monthly payment that fits into that budget. 

Next, you will be assigned a personal Debt Negotiator who will use the funds available from your monthly payments to settle your debts for about half of what you owe. You save thousands on both the balance and the interest and can pay off your debt in two to three years.

Debt Settlement has the power to stop your financial ship from going down entirely.  Debt Relief NW, Inc. has built a reputation for quality debt management solutions and we have maintained an A+ ranking with the Better Business Bureau. When we say we can help you through debt settlement, we mean it.

You don't have to face the storm on your own. Debt Settlement can bring you in to a safe harbor and get you back on track.

 

Guest Blogger: Andrea from Portland, OR

photo by: foxypar4

The doorbell rings and you are handed a summons regarding one of your past due credit accounts.

What do you do when you receive a summons?

First…DON’T PANIC!

• You are not going to jail!
• You will not have to go to court!
• They are not going to garnish your next paycheck.
• They are not going to garnish your bank account.
• They are not going to come take all of your belongings!

 

Next…DON'T IGNORE THE SUMMONS!

For the sake of this post, we're talking about unsecured debts such as:

• Credit cards
• Personal loans
• Medical bills
• Personal line of credit
• Store cards, etc.
• Auto Repo

After numerous phone calls and letters, a creditor may decide to start legal action in order to collect the debt that you owe.  Not knowing how the process works, most people are intimidated and somehow find a way to pay the entire debt.  Once you understand the summons process, you will find that you can still settle that debt for less than the full balance.

The Summons Process

(The entire process usually takes 3 months or so.)

1. A CLAIM will be filed in the county court where you reside.
2. You will receive a SUMMONS. This is usually hand delivered and will state something to the effect that you have 20 or 30 days after receipt of the summons to ” ANSWER THE CLAIM.”
3. An answer is your side of the story that you would file ONLY if you feel you do not owe the amount of the claim. Even though you don't like the additional interest, late fees and now court costs, you still owe that as part of the debt. 
4. If you owe the debt, there is no reason to spend the time or money for an answer and, YOU DO NOT NEED TO GO TO COURT.
5. Contact the  attorney for the plaintiff (the creditor). If you are employed and receive normal W-2 wages, you need to try and work out a repayment plan so they do not proceed with the legal action.

If you are a Debt Relief client, you can skip step #5 and CONTACT US IMMEDIATELY by faxing or emailing the summons to your negotiator.  We (DRNW, Inc.) will contact the attorney for the plaintiff on your behalf, and we will most likely be able to negotiate a settlement based on a repayment plan to stop the legal action. Although we cannot guarantee that we will be able to negotiate a sollution, we are successful about 99% of the time!

In this economy, Americans are up to their eybrows in debt.  In fact, the average American household with at least one credit card has over $10,000 in credit-card debt, and the average interest rate runs in the mid- to high teens at any given time.

Some debt is good

Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates.

Some debt is bad

Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay for them with cash when the time comes.

Controlling your debt is possible if you start by getting a handle on your spending.

Most people spend thousands of dollars without much thought to what they're buying. In order to get a handle on your spending you need to creat a BUDGET. Write down everything you spend for a month, cut back on things you don't need, and start saving the money left over or use it to reduce your debt more quickly.

Get your debt paid off!

Now that you have gotten a handle on your spending, it is time to get your debt paid off.  The key to getting out of debt efficiently is first to pay down the balances of loans or credit cards that charge the most interest while paying at least the minimum due on all your other debt. Once the high-interest debt is paid down, tackle the next highest, and so on.

If you can't keep up with your payments or you have extremely high interest rates, you should consider a Debt Management or Debt Settlement program.

These programs will help you eliminate your debt quickly while saving you money!

Don't fall into the minimum trap

If you just pay the minimum due on credit-card bills, you'll barely cover the interest you owe. It will take you years to pay off your balance, and potentially you'll end up spending thousands of dollars more than the original amount you charged.

Watch where you borrow

It may be convenient to borrow against your home or your 401(k) to pay off debt, but it can be dangerous. You could lose your home or fall short of your investing goals at retirement.

Get help AS SOON AS you need it

If you have more debt than you can manage, get help before your debt is too far gone. There are reputable debt counseling agencies that may be able to consolidate your debt and assist you in better managing your finances.

DEBT RELIEF CAN HELP! 1-877-492-4109

Reading a credit report can be confusing, but it is much more simple than you think.  This video from About.com will walk you step by step through a credit report and explain just what it is you are looking at.

If you don't have a current copy of your credit report, you can get a Free credit report at www.annualcreditreport.com.

So, how do you Read a Credit Report?

Now that you have carefully reviewed your credit report, you have a better understanding of what creditors are seeing when you apply for a loan. 

If you found any mistakes or debts that you do not believe you owe, you can dispute these errors and have them corrected by the credit reporting agencies. Credit Card Debt Depair is easy and you can do it yourself!

If you have more debt than you realized or more debt than your monthly budget can handle, there are programs that can help.

• Debt Consolidation or Debt Management will reduce your monthly payment, reduce your interest rate, eliminate creditor fees, and have you out of debt in just 3-5 years! This type of program is great if you are basically current or just starting to get behind on your monthly payments, but you have high interest rates and fees.

• Through the Debt Settlement program, your Debt Solutions Specialist will work with you and your budget to determine a monthly payment that will work.  The money you pay monthly will be used by your personal Debt Negotiator to settle your debts for 50% or less than what you owe.  

If you would like some help getting rid of your debt, click the link below for a FREE Debt Elimination Summary!

Worrying about your debt won't make it go away, but for millions of Americans the stress from deepening debt is becoming a major pain in the neck - and back and head and stomach! But stressing about your debt won't make it go away. 

You MUST make a Debt Payoff Plan! 

With so many different debt elimination methods available these days, it can seem like a tough task getting started and following through with a plan that will actually get you out of debt.

The answer is simple.  You just have to take one step at a time.  In this post I’m going to cover a simple debt elimination plan that will have you on your way to getting debt free in no time at all!

Clean Up Your Budget

The first thing you need to do is clean up you budget or if you don’t have one get started now.  A budget will help you get things in order and let you know how much money you are spending each and every month and how much you are saving.

What you are really looking for is how much money you actually have left over at the end of the month.  Having an extra $100 set aside for your debt elimination plans is all you need to get started.  If you don’t have any extra money left, you may have to eliminate some things from your budget, get a part time job to help out, or find a way to reduce your monthly minimum payments while still eliminating your debt. (such as Debt Consolidation or Debt Settlement: see below)

Get Your Debt Together

Next you need to get all of your debts in order.  To do this grab all of your creditor statements.  And put all of your debts in order, so pull out a blank sheet of paper and list all you debts from the lowest balance to the highest balance.

When you have this done your mortgage should be listed as the last debt to be paid off and something like a credit card should be the first thing you pay off.  The reason for this is because I want you to see results quickly by paying of the debt with the lowest balance.

Eliminate The Debt

There are several ways of going about eliminating your debt.  However, what you must stop doing is only paying the minimum payments.  If you don't, you will end up paying back at least three times what you originally owed and will spend decades paying back the debt.  Here are three of the best debt elimination options available to you:

• Debt Consolidation or Debt Manegment - In this program, your Debt Consolidation or Debt Management company will work with your creditors to reduce your interest rate, eliminate fees, and lower your monthly payment.  Another plus to this type of program is that your payment will stay the same over the course of the program which will get you out of debt in just 3-5 years on average.
• Debt Snowball Method - This method basically involves listing your debts from smallest balance to highest and paying them off in that order.  You will always make the minimum payment on each debt, but will also contribute any extra money you found in your budget to the smallest debt.  Once that debt is gone, you use the money you were paying on it to pay in addition to the minimum payment on the next debt.  If you can find a little extra in your budget, this is a great plan.  You might also consider the "Debt Avalanche" which uses the same principle. However, instead of paying off the smallest balance first, you pay off the debt with the highest interest rate. 
• Debt Settlement - This is a great plan for anyone who needs to drastically reduce their monthly payments or for someone who is already significantly behind on their payments.  Your Debt Settlement company will negotiate with your creditors and settle your accounts for usually 50% of what you owe.  (sometimes even less)

If your looking more info on creating your Debt Payoff Plan, one of our Debt Solutions Specialist would be happy to anwser any and all of your questions.  Please feel free to email info@debtreliefnw.com or call us at 877-492-4109.

photo by: BLW Photography

We get asked this question nearly every day.  So, it's time to answer the question:

Can Social Security Disability check be garnished?

The simple answer is SOMETIMES.  Social security disability benefits can be garnished. However, garnishment can only be carried out in a few specific instances. According to the social security administration, social security disability benefits may only be garnished to enforce child and alimony obligations, pay federal tax and debts owed to the IRS, and pay debts owed to federal agencies.

Your Social Security Disability checks CAN be garnished if:

• You have alimony or child support obligations
• You have a delinquent student loan
• You owe taxes or IRS penalties

Creditors, however, are NOT entitled to garnishment provisions for social security disability benefits. 

Your Social Security Disability checks CAN'T be garnished if:

• You are delinquent on a personal loan
• You are delinquent on a car loan
• You are delinquent on a credit card debt

However, if you are behind on a personal loan, car loan, credit card or other type of debt, you need to set up a plan to get the debt caught up and on a re-payment schedule.  There are programs, such as Debt Consolidation & Debt Settlement, that can help to reduce your monthly payment, lower or even eliminate the interest being charged, and get you out of debt FAST!

Our Solutions Specialist can help you decide what is the best option for you.  Give us a call for a Free Debt Elimination Consultation or click on the link below!

1-877-492-4109

photo by: the Italian voice

1-877-492-4109